James Kelly ✪ MBA

Today’s pod is with none other than Tim Petrey, CPA, CGMA and we cover some JUICY topics. We talk about how he worked through Ascend acquiring his firm and remaining on as CEO, how he retained staff, and even delighted employees as part of the PE transaction, why he got into payroll, and above all, why one of the easiest solutions to the talent pipeline might be just having more photos of partners on Jet Skis out there enjoying life. Make sure you give this pod a listen! Also a huge shoutout to Mike Manalac, CPA for the artwork on this one - if you’re not already following him, go do so for the most entertaining way to stay current on the industry. #CPA #Accounting #PublicAccounting

11

2 Comments

Want to boost your business's financial health? A fractional CFO can: • Provide detailed cash forecasts • Guide smart investments • Analyze profitability from top to bottom Learn how in this quick video. It's essential for founders and CEOs. #BusinessGrowth #FinancialStrategy #CFOServices

20

3 Comments

In the realm of business planning, the traditional calendar-based approach is outdated. Rooted in tax cycles and management principles from decades past, the annual budgeting ritual often feels like a relic of a bygone era. It's time to usher in a new era of agility and adaptability through the adoption of continual planning.   Picture yourself on your daily commute, encountering a sea of red tail lights ahead. At that moment, you're faced with a choice: do you stick to your intended route, resigned to sitting in traffic, or do you pivot, seeking alternative exits and side roads to reach your destination faster? This scenario mirrors the essence of business planning.   Continual planning offers a host of advantages over its annual counterpart. Instead of being bound by a rigid yearly cycle, businesses can embrace monthly or quarterly iterations, allowing for more frequent adjustments and refinements to strategies. It's akin to driving with a constantly updated GPS, enabling you to navigate unforeseen obstacles and optimize your route in real-time.   Gone are the days of exhaustive, once-a-year planning sessions. Instead, the focus shifts to agile adjustments and strategic thinking. Rather than fixating solely on year-end outcomes, businesses can build dynamic 12-month rolling forecasts—a fluid roadmap that evolves alongside shifting market dynamics and internal priorities.   Transitioning from annual budgets to toll gate planning and continual forecasting empowers businesses to cultivate resilience and responsiveness. It's about fostering a culture of adaptability, where flexibility becomes a strategic advantage in navigating the complexities of today's business landscape.   In this paradigm shift, the emphasis lies not on adhering to arbitrary calendar milestones, but on embracing and adjusting with change. By leveraging continual planning, businesses can stay ahead of the curve, driving innovation and charting a course towards sustained success in an ever-evolving marketplace.

8

1 Comment

At Tanner LLC we work with a lot of technology companies and the subject software capitalization is always point of discussion. It is US GAAP, but we understand most investors just consider it a complication in the P&L and its hard to track and implement. The FASB board agreed this week to explore ways to simplify this GAAP, which would be welcomed. Below is a short summary of what they released. The Board decided to pursue targeted improvements to Subtopic 350-40, Intangibles—Goodwill and Other—Internal-Use Software. Specifically, the Board decided to: 1. Specify that the costs of software that has unresolved high-risk development issues would be accounted for as research and development (R&D) expenses in accordance with Subtopic 730-10, Research and Development—Overall 2. Clarify the starting capitalization threshold for nonlinear software development, including: a. Remove the requirement for an entity to evaluate the preliminary project stage and application development stage when determining the starting point for capitalization b. Require that an entity consider significant unresolved development uncertainties if it is unclear that it is probable that a project will be completed and the software will be used to perform the function intended. The Board decided not to further pursue a single model for recognition and measurement of software costs, which the Board had discussed previously, and decided not to make targeted improvements for recognition and measurement to Subtopic 985-20, Software—Costs of Software to Be Sold, Leased, or Marketed.

21

Numeric has tapped into something powerful. Their accounting automation solution is already reshaping how companies like OpenAI, Brex, WHOOP and Plaid manage financial data. What’s most exciting? CFOs are spending more time in Numeric than in legacy systems like NetSuite or Oracle. 🤯That’s a sign of where this platform is headed—beyond close automation and into a much larger opportunity. Thrilled to support Parker Gilbert, Andrew Bihl, and Anthony Alvernaz as they redefine the future of accounting. More here on our partnership https://lnkd.in/es7E2vyg

118

3 Comments

Demystifying Form 1120: Your Guide to C Corporation Tax Filing C corporations, the workhorses of the business world, have a unique tax filing requirement: Form 1120. This form serves as the official report card for the IRS, detailing your corporation's financial health and tax liability. But navigating the intricacies of Form 1120 can feel like deciphering a foreign language. Fear not! This post unpacks the essentials of Form 1120, ensuring you file with confidence. We'll delve into who exactly needs to file Form 1120, from traditional C corporations to LLCs electing corporate tax treatment. Don't get caught off guard - understand the filing requirements and avoid potential penalties. #Form1120 #taxnotices #cCorp https://hubs.la/Q02BHL1t0

6

We provide fractional CFO services to companies looking to fundraise or go through M&A. We do a lot of financial due diligence at Ecap - here are the top 5 recommendations we provide our clients with: 1) Set up your SaaS KPIs and metrics appropriately from the beginning;  - Make sure you fully weight gross profit margin; the number of companies I see which are too light on their cost of sales (particularly customer support / success) is high - ARR is correctly stated (free from POC’s and trials, free from one off revenues, free from credit notes, free from discounts), and - Metrics use the right formulas for your business (i.e do you look at the KPIs in month, over the last 3 months, over the last 12 months etc) 2) Cash - needs to have proper safe guarding; one person cannot just have access to the bank account; one person cannot be responsible for all the authorisations & payments; one person cannot just remove investor funds 3) Aged receivables & bad debt - I get it, you’re a small team, and chasing bad debt isn’t a high priority, but bad debt erodes revenues, it erodes cash and fundamentally it erodes the confidence of those reviewing your numbers. Stay on top of bad debt 4) Bespoke contracts - if you are a SaaS or services business, you should try and make everything as standardised as possible - pricing, order forms, cash collection etc. Again, I get it; those at the early stages of their businesses are throwing spaghetti against the wall to see what sticks, however, my previous boss used to say “it needs to be repeatable, scalable and thus predictable” - bespoke doesn’t scale very well; it’s not hugely repeatable and it isn’t predictable 5) Accruals - I work with a large number of companies that do not do accrual accounting; if you use a good outsourced accountant, spend time briefing them on what is costs you will have to pay in that month and future months (an accrual), and what is an amount you have prepaid for a set amount of time (prepayments); things like insurance can be prepaid and amortised over the year If you're looking to learn more about fundraising, check out our Fundraising 101 course here: https://lnkd.in/eG7d9kbs

2

A Fractional CFO is a financial expert who provides strategic financial guidance to businesses without the full-time commitment of a traditional CFO. This arrangement allows companies to benefit from high-level financial expertise at a fraction of the cost, making it an ideal solution for small to medium-sized enterprises looking to enhance their financial strategy. By engaging a Fractional CFO, businesses can access tailored financial advice that adapts to their unique needs and growth objectives. ➡️ For a comprehensive overview, visit https://lnkd.in/eqT5jtab #growth #advisors #businesses #strategy #boardroomadvisors #business #advisor #expertise #success #finance #idealsolution #scaleups #expert #solution #objectives #financialstrategy #financialadvice #financialexpert #financialguidance #ceos #cfo #fractionalCFO

6

Tips for financial planning with your small business … getting started: 1. Understand your financials - the money in and out 2. Set goals for year 3. Find resources to help from bookkeeper to CFO #capitisadvisors #fractionalCFO #CFO #smallbusinesses #finance #budgetyourbusiness

8

Great article from Forbes about Fractional and Virtual CFOs (vCFO):   1. Assessing the Need for a Fractional or Virtual CFO: This involves evaluating financial performance, considering strategic scaling plans, assessing operational efficiency, and addressing compliance and risk management concerns. 2. Benefits of a Fractional CFO: These include cost-effectiveness, experienced advisory role, and flexible engagement options tailored to the business's current needs. 3. Finding the Right Fit: Tips are provided for selecting the best fractional CFO, including looking for industry experience, checking qualifications, and evaluating communication skills.   If you’re looking for a vCFO, let me know.   https://lnkd.in/g2dUaRHE

20

1 Comment

Ready to ditch manual data entry and streamline your accounting workflow? Our free webinar on June 27th will show you how to automate your most time-consuming tasks and get back to what really matters: serving your clients and growing your business. Register today! 👉 https://lnkd.in/eAizdtYP #accounting #bookkeeping #automation #webinar #productivity #efficiency

5

Get a business #valuation estimate with our Business Valuation Calculator. Free, easy-to-use and no commitment. Give it a try today: https://lnkd.in/eedTNcK6 #businessvaluation #valuationmethods #businessmethods #businessbrokers #businessadvisor #sellingabusiness #businessforsale

4

Accounting and specialty tax firms can do more Cost Seg studies and get more revenue with the right software. Even at tax time. ____ Don’t turn down potential revenue from doing Cost Seg studies. Get SegStream to help you do more. segstream.com

3

1 Comment

Accounting and Specialty tax professionals assume they need a team of engineers to offer Cost Segregation services to their clients. Here’s how dedicated software built by engineers proves that assumption wrong. ____ Are you a tax professional looking to offer Cost Seg services in house? DM me to learn how SegStream can help you.

2

🚀 In the world of SaaS, there's a golden rule for allocating operating expenses: the 40/40/20 rule. This means 40% of OPEX should be dedicated to R&D, another 40% to sales and marketing, and the remaining 20% to G&A. 🔍 Why this distribution? R&D (40%): Investing in research and development ensures that your product remains innovative, competitive, and aligned with market demands. This is the engine that drives your product’s evolution. Sales & Marketing (40%): This is your growth catalyst. Effective sales and marketing strategies not only help in acquiring new customers but also in retaining and expanding within your current customer base. G&A (20%): While general and administrative expenses are necessary to keep the wheels turning, they should be optimized. The goal is to run lean and allocate more resources to building and selling your product. Balancing these expenditures is key to sustainable growth. Focus on building a top-notch product and ensuring it reaches the right audience, while keeping overheads in check. #SaaS #BusinessStrategy #StartupGrowth #RD #SalesAndMarketing #Efficiency #FinancialPlanning #TechInnovation

16

1 Comment

Hiring a full-time CFO may not be feasible for startups and small businesses. However, a fractional CFO provides access to expert financial leadership at a more manageable cost. Our latest blog explains the role of fractional CFOs, how they operate, and why they are an effective solution for growing businesses. Discover if this could be the right decision for your company. #FractionalCFO #StartupGrowth #FinancialLeadership #SmallBusinessSuccess #OutsourcedCFO #BusinessFinance #EscalonServices

2

💡 Did you know that a huge deal-killer in B2B SaaS acquisitions isn't what most founders think? As someone who's guided hundreds of startups through funding rounds, I can't stress enough how crucial clean books and solid financial processes are. Want to sail through due diligence at scale? It all starts with your financial stack. 🎧 Tune in to our latest podcast for insider tips. Find the link in Maxio's original post. #VCReadiness

9

A big issue when specialty tax teams are doing Cost Seg studies in Excel is having to select hundreds of components manually. Fortunately, I’ve got an easy fix for that. Find out what it is in the video below. ____ PS - SegStream helps you save time completing Cost Seg studies. segstream.com

4

Is your business burning through cash? 🔥 I have ten tips for you. One of the first places I start as a fractional CFO is analyzing a company’s burn rate. That’s how fast your business goes through its cash reserve in a week, month, etc. When you reduce your burn, you increase your runway - the amount of time you can operate without outside investment or taking on debt. Over my years in finance, I’ve seen businesses in numerous industries share some common pitfalls that make it harder to keep cash in the bank. 1) Watch the payment terms with your customers! Have clear, short payment terms - 30 days max! 2) Collect! If you customer's payment is overdue, ping them! And again and again until they pay 3) Watch your subscriptions! Sometimes people buy a ton of seats thinking they’ll use them and they don’t. But the company continues to pay. Do an audit to see where you can save. 4) Company credit cards are not for everyone. The more cards you have out there, the easier it is for transactions to pile up. It leaves your accounting team overwhelmed and increases the likelihood for errors. 5) Extend your payables. You don’t have to pay invoices right away if the terms are 30 days. Don’t be afraid to stretch these where you can. 6) Double check services and functionality. Do you need all that tech? Is there a lower tier package you could use? Renegotiate these if you find you can get by with less. 7) Autopay. I get it, it’s so easy. But there are so many ways this can burn cash. Have a way to review these charges every time they go through to make sure you still use what you’re paying for, and check for rate increases. 8) Manage the managers. Make sure your managers are properly overseeing their teams’ use of company funds. 9) Hang out with your accounting team. Have regular check-ins. Communicating can surface issues before they become big problems. 10) Right people, right seats. You might not think of poor performance as a cash suck, but it really is. If you’re paying someone for a job done poorly, you’re not only wasting money, you’re holding the rest of your team back. As you can see from the list above, it’s not just the big investments that lead to an unhealthy burn rate. It’s the little things that are easy to overlook that add up. 💡Interested in learning more about extending your runway and reducing burn? Give me a call or a follow! #runway #burn #fractionalcfo #startup

18

2 Comments